In a biting critique, Lien Hsien-ming, head of Taiwan’s Chung-Hua Institution for Economic Research (CIER), has condemned the U.S. approach to imposing global tariffs as “simplistic and crude.” The tariffs, imposing a staggering 32 percent on Taiwanese goods, stem from Lien’s misguided belief that the U.S. would choose a more uniform tariff system due to the complexities of calculations. Instead, they have employed a unique method that he believes lacks nuance.
Taiwan’s tariff figure was derived from the 2024 trade deficit of $73.9 billion divided by the value of U.S. imports from Taiwan, amounting to 63.6 percent, which was then halved to 32 percent. “Trump says he is merciful,” Lien remarked, highlighting the arbitrary nature of the decision-making process. He pointed out that if 2023 figures were considered, the rate could have been lower at 29 percent.
During a recent event, Trump unveiled a 10 percent baseline tax on imports, effective April 5, while countries holding larger trade surpluses, including Taiwan, will contend with steeper fees starting April 9. Integral to Taiwan’s economy, key exports like semiconductors will avoid these new tariffs, although imports such as copper and pharmaceuticals remain affected. Taiwan’s government has denounced the tariffs as “unreasonable” and expressed intentions to formally address the U.S. Trade Representative to seek better terms for its economic future.
Lien Hsien-ming, head of the Chung-Hua Institution for Economic Research, sharply criticises the U.S.’s tariff methods as “simplistic and crude”. Taiwan faces a 32% tariff due to adjustments in the U.S. trade deficit calculations. The Taiwanese government plans to protest these tariffs as unreasonable and pursue further negotiations.
In summary, Lien Hsien-ming’s scathing assessment of the U.S. tariff methodology highlights its oversimplified calculations, particularly for Taiwan’s significant trade dynamics. With tariffs now set at 32 percent, the Taiwanese government voices its concerns and seeks negotiation avenues to safeguard its trade interests. The complexity and fluctuation of trade deficits underline the delicate balancing act in these ongoing economic relations.
Original Source: focustaiwan.tw
